Crypto Market Faces Sharp Correction, Nearly $1 Billion Liquidated as Bitcoin Dips Below $96K

Crypto Market Faces Sharp Correction, Nearly $1 Billion Liquidated as Bitcoin Dips Below $96K

The cryptocurrency market experienced a significant pullback following Bitcoin's breakthrough above the $100,000 mark, as bulls' optimism quickly turned to losses. Within hours of reaching this historic milestone, Bitcoin plunged below the $96,000 price level, triggering a wave of liquidations across the digital assets market.


Market Overview: 2% Drop in Crypto Market Cap

The global cryptocurrency market saw a minor correction, with the total market capitalization dropping by approximately 2% in the past 24 hours, settling at $3.6 trillion. Trading volume also declined by 12%, falling to $308 billion. While some of the biggest altcoins, such as Ethereum (ETH) and Solana (SOL), saw slight increases, most other assets posted losses.


Bitcoin Bulls Hit Hard: $875 Million in Liquidations

Data from CoinGlass reveals that over 156,000 traders were liquidated within a 24-hour period, as both long and short positions were forced to close. The total liquidation value reached $875 million, with the largest single liquidation order for BTC/USDT valued at approximately $18.94 million on the OKX exchange.


A staggering 80% of the liquidated positions—worth more than $702 million—came from long bets. Bitcoin bulls, who had anticipated further upward momentum, faced heavy losses, with over $415 million of long positions being liquidated. As a result, Bitcoin’s price dropped by over 4% in the last 24 hours, from a high of $100,000 to a low of $94,000. However, Bitcoin managed to recover slightly and was trading at $98,299 at press time.


Concerns Over Mt. Gox’s BTC Transfer Spark Sell-Off Fears

Adding to the uncertainty, Arkham Intelligence reported that Mt. Gox transferred 3,493 BTC (worth approximately $340 million) to a new address. Additionally, 126.57 BTC (valued at $12 million) was moved to an address labeled bc1qkf. This news has stirred concerns about a potential sell-off, increasing market fears and prompting some holders to act cautiously.


Crypto ETFs See Strong Inflows Amid Market Volatility

Despite the market turbulence, crypto-focused exchange-traded funds (ETFs) are seeing impressive inflows. On December 5, Bitcoin spot ETFs recorded a net inflow of $767 million, marking the sixth consecutive day of positive inflows. BlackRock’s Bitcoin ETF, IBIT, has seen more than $2.5 billion in inflows over the last five days, with a cumulative total of $34.11 billion. IBIT reported a single-day net inflow of $771 million on December 5.


Ethereum spot ETFs are also gaining traction. On the same day, Ethereum ETFs reported a net inflow of $428 million, the largest since their launch, bringing their cumulative net inflows to over $1 billion after 96 trading days. BlackRock's ETHA led the way, adding $293 million per day, while Fidelity’s FETH saw $114 million in daily inflows.


Ethereum Price Soars Amid Positive Sentiment

Ethereum’s recent performance reflects growing investor confidence, with its price up by 50% in the last 30 days. At press time, Ethereum was trading at an average price of $3,887, supported by the consistent influx of capital into its ETFs.


The cryptocurrency market is currently navigating through a volatile phase, with Bitcoin’s dramatic dip below $96K causing significant liquidations. However, investor interest in crypto ETFs, particularly for Bitcoin and Ethereum, remains strong, signaling optimism for the broader market despite short-term turbulence. As the market recovers from this correction, all eyes will be on the next price movements for Bitcoin and Ethereum, with many hoping for sustained growth in the months ahead

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